The distribution of butane gas cylinders by coupons will soon come into effect, but Ahmed Kotb discovers that it may not be the definitive solution The plan to distribute subsidised butane gas cylinders through coupons will finally come into effect within two months, government officials have said. The ministries of supply and petroleum are finalising discussions over the procedures needed to apply the coupons system, including the selection of beneficiaries and identifying the ideal way of distributing the cylinders. According to Ahmed Abdine, minister of local development, the new system will provide the approximately 17 million families registered for the ration card system with one canister per month if the family is three members or less, with families of five or more receiving two canisters per month. There are approximately 65 million Egyptians who will benefit from the coupons system. According to a government poll conducted last year, 78.3 per cent of Egyptians use butane canisters as a source of energy, while 22.2 per cent depend on natural gas. The coupons system is intended to help achieve social justice by making sure the funds allocated for subsidies target those who need them, eliminating the flourishing black market that brought the price of a butane canister up to more than LE70 while its official subsidised price is LE2.5. Under the new coupon system, a canister not provided through coupons will be sold at LE25. When implemented, the plan is expected to save LE3-4 billion from the annual subsidies bill. The amount budgeted for fuel subsidies went down in the current fiscal year by 27 per cent, falling to LE70 billion from LE95 billion in the previous fiscal year. Butane gas subsidies consumed 14 per cent of total monies allocated for fuel subsidies in the 2011/2012 budget. But Ibrahim Zahran, former president of Khalda Petroleum Company, believes that the coupons system is not a solution to the "chronic" problem of butane gas shortages. "It is simple. Our production does not meet the increasing demand, and we cannot depend on imports," he explained. Egypt imports more than 50 per cent of its butane gas needs. He added that strikes or sit-ins that break out at some Egyptian ports -- instances of which occurred several times in the last few months -- lead to shortages in the supply of butane gas cylinders across the country because ships are unable to unload their cargoes. Zahran said the Egyptian government should cancel natural gas export contracts and look into supplying more households with locally produced natural gas. "This way we could save money by reducing unneeded imports of butane gas, and save ourselves the trouble of creating continuous crises resulting from shortages in gas cylinders," he stated. Officials, along with many experts, see that the fastest way to curb the gas canisters dilemma is to speed up the implementation of the coupons system, especially that consumption soars in winter. Others believe that the quantity of gas allocated through cylinders is not enough. Howaida Mohamed, a housewife whose family is made up of three individuals, said one canister per month will not be enough. "I need one in the kitchen for cooking, and another in the bathroom to heat water for the shower, especially in winter." Mohamed is worried that she will have to buy the second canister at a more expensive price, which will put a dent in her expenses. Implementation of the coupons scheme, which was designed more than two years ago and partially modified by former cabinets, was postponed several times. Hossam Arafat, head of the General Division of Petroleum Products at the Federation of Chambers of Commerce, says he is worried that the distribution plan is not yet clear, which would cause problems. According to the coupons system, Arafat explained, beneficiaries will have the right to receive their canister quotas any time they want. At peak times, he added, people will rush to warehouses demanding their share of canisters, which will create problems given that each warehouse, until now, has a specific quota each month. "If that problem is taken into consideration, then I think things will go smoothly and people will be happy with the coupons system," he said. Meanwhile, the Egyptian General Petroleum Corporation (EGPC) announced that it increased the quantity of butane gas cylinders available in the market to one million, a 10 per cent increase, in order to combat the black market and ease shortages in some areas.
